Warren Buffett’s Berkshire sets cash record as he prepares to step down—but his influence endures

Good morning. After six decades at the helm of Berkshire Hathaway, legendary investor Warren Buffett will end his tenure as CEO at the end of this year, with vice chairman Greg Abel officially taking over as chief executive at the start of 2026. Buffett will remain as chair of Berkshire, the company announced on Monday, so he’ll still have a say in how the company is run.

When Abel assumes the role, he will not lack resources: The 94-year-old Buffett’s fabled firm is currently sitting on a record $347.7 billion in cash and short-term investments, up from $334.2 billion at the end of last year.

Berkshire (No. 5 on the Fortune 500) is unique because it has steady, reliable cash coming from the insurance side of its business, even as Buffett—and Abel—remain on constant lookout for acquisition opportunities and investments. Berkshire is not focused on generating revenue in the same way as many traditional operating companies. Its approach to holding and deploying cash is different from that of most other corporations. So, it is Berkshire’s use of this cash that will be most interesting to watch in the coming years, Bret Bero, assistant professor of practice in management at Babson College, told me.

Buffett made it clear last weekend that he hasn’t been holding off on any investment opportunities to set Abel up to shine as the new CEO.

“I wouldn’t do anything so noble as to withhold investing myself so that Greg could look good,” Buffett quipped during the question-and-answer session at the annual shareholder meeting on Saturday. Investors have been wondering when he will deploy Berkshire’s stockpile of cash on a bigger scale; however, the company has made some smaller stock purchases. “We’re running a business which is very, very, very opportunistic…We have made a lot of money by not wanting to be fully invested at all times,” Buffett said at the meeting.

It offers a lesson in how firms fortunate enough to have a cash surplus should manage those holdings. You can read my complete article on this topic here.

Buffett became CEO in 1970 after his investment partnership acquired Berkshire, then a textile business, in 1965. Over the years, he has had a significant influence on business leaders such as Brian Moynihan, chairman, president, and CEO of Bank of America.

“Warren Buffett has achieved unparalleled success over a seven-decade-plus career,” Moynihan said in a statement. “Beyond his business success, his unprecedented philanthropic giving continues to be an example to follow.”

He continued, “His life lessons delivered to young and old are as valuable as his business acumen. I have personally learned so much from him and look forward to continuing to benefit from his insights. He has been a tremendous supporter and investor in Bank of America and our nation’s economy and the innovative spirit of the United States.”

Has Buffett influenced your career? If so, send me an email—I’d love to hear about it.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

A CFO Daily exclusive: Céline Dufétel joined Bridgewater Associates as CFO, effective May 5. Dufétel succeeds Gerry Pasciucco, the firm’s most senior financial officer, as part of his planned retirement at the end of this year. She came to Bridgewater after serving as president and COO of Checkout.com, where she oversaw the company’s financial, treasury, and strategy functions. She joined the company as CFO in 2021. Dufétel also previously served as COO and CFO of T. Rowe Price for four years. At Bridgewater, she will be responsible for overseeing the finance department and developing and coordinating strategic financial matters, reporting to CEO Nir Bar Dea.

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From the report: “Sam Altman and OpenAI did something unusual on Monday: They backed down. The plan to spin out OpenAI, the $300 billion maker of ChatGPT, into an independent, for-profit company was scrapped. To call the move an about-face is an understatement. OpenAI had been pursuing this corporate restructuring for more than a year, first quietly, and then—as details leaked—in the public eye.”

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